Please fill in the blanks and fix any errors.

The income statement, balance sheets, and additional information for Video Phones, Inc., are provided VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2018 $3,386,000 Net sales Expenses Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $2,200,000 908,000 32,000 8,500 17,500 53,000 Total expenses 3,219,000 Net income 167,000 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets Cash Accounts receivable Inventory Prepaid rent $ 270,300 $ 185,900 65,000 140,000 6,600 86,500 105,000 13,200 Long-term assets Investments Land Equipment Accumulated depreciation 110,000 215,000 280,000 (75,000) 250,000 215,000 (43,000) Total assets $1,005,000 819,500 Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable 70,500 86,000 11,000 14,500 6,500 15,500 295,000 350,000 Long-term liabilities Notes payable 230,000 Stockholders' equity: Common stock Retained earnings 350,000 128,000 267,500 Total liabilities and stockholders' equity $1,005,000 819,500 Additional Information for 2018: 1. Purchase investment in bonds for $110,000 2. Sell land costing $35,000 for only $26,500, resulting in a $8,500 loss on sale of land 3. Purchase $65,000 in equipment by borrowing $65,000 with a note payable due in three years. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $27,500. Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) Answer is not complete VIDEO PHONES, INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash Flows from Operating Activities: Net income s 167,000 Adiustments to reconcile net income to net cash flows from operating activities: | 32.0000 Depreciation expense Loss (on sale of land) Decrease in interest payable Increase in income tax payable 8,500 (4,500) 1,000 Net cash flows from operating activities 204,000 Cash Flows from Investing Activities Sale of land Purchase investment in bonds Decrease in interest payable 250,000 Net cash flows from investing activities 250,000 Cash Flows from Financing Activities: Payment of cash dividends Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities